The market price of bitcoin in South Korea broke the 13 million won ($11,000) mark on June 25 and 15 million won ($12,900) on June 26 and surpassed 16 million won ($13,800) on the morning of June 27. Since then, bitcoin prices have been going up and down slightly at around 16 million won and maintained at around 16.2 million won.
Factors that directly affected the rise in bitcoin were the U.S. Commodity Futures Trading Commission (CFTC)'s approval of futures trading on June 25, the first direct payment of bitcoin.
Previously, Financial Action Task Force (FATF) recognized cryptocurrency as an asset on June 21 and gave cryptocurrency dealers the same Anti-Money Laundering (AML) obligation as banks.
It is also seen as a positive sign that global Bitcoin ATMs have surpassed 5,000 units and that Facebook, which has 2.4 billion users, is speeding up the commercialization of "Rebra" by releasing a white paper on its cryptocurrency.
Investors appear to be collecting cryptocurrency on expectations that if Facebook issues "Rebra", the cryptocurrency will become a mainstream investment tool. As Facebook has issued cryptocurrency, some joke that it should now be called a "facebank," not a "facebook."
In fact, the Financial Times of the U.K. selected the title "Beatcoin surpassed $13,000 by Facebank" on June 27. Facebook recently announced that it will release the cryptocurrency "Rebra" sometime in the first half of next year.
The "Rebra" is operated in the form of a "stable coin" that is linked to the currencies of major countries around the world to keep their value from being swayed. In other words, 1,000 won is the same form as 1 "Rebra." It is not operated at a fixed exchange rate. Facebook believes that if "Rebra" successfully settles down, billions of people will be able to store and remit money without transaction fees.
For now, Facebook's 2.4 billion users worldwide are potential customers. You can purchase things anywhere with QR code without a bank account. Just like sending a photo file on Kakao Talk, loans and money transfers will be made as easy as well.
Facebook aims to capture the cross-border money transfer market (about $600 billion a year) by eliminating transaction fees for cryptocurrency. Later, it plans to provide financial infrastructure to developing countries, including Africa and India.
As demand for bitcoin is temporarily increasing in South Korea, it is confirmed that there is a phenomenon called "kimchi premium" as it has formed a price range that is about 4% higher than foreign market price.
Experts cautioned against the sudden bitcoin strength, saying a sharp drop could come due to a backlash against a sharp rise.